Investments
 
Dansk Merchant Capital (DMC) is prepared to undertake direct equity investments in companies.

Every investment is unique with respect to size, strategy, growth rates, leverage and assets and it may be advantageous to involve DMC in the following cases:

  • A company owner seeks to undertake a sale of a company or a listing on the stock exchange, but waiting a number of years will increase the value of the company.
  • A company owner seeks to undertake a successional change, but the new owner does not have sufficient equity to finance the transaction.
  • A company is expecting considerable growth (organic or by acquisition), but needs capital to implement its strategy.
  • A potential buyer is in need of equity to undertake an acquisition.
Also, DMC is among other things able to undertake direct equity investments in the following situations:

  • Management Buy-Out (MBO) – a structure in which the existing management wants to acquire the company.
  • Management Buy-In (MBI) – a structure in which an external management group wants to acquire a company.
  • Leveraged platform investments (acquisition of a company in order to acquire other companies to the existing platform).
In most cases DMC invests as a minority shareholder without active involvement in day-to-day management.

Often the time frame is 1-5 years during which DMC structurally cooperates with the management, the board and operational partners of the company. DMC works actively with its investments either as an observer in the board or through a nominated representative with specific industrial knowledge or network to the benefit of the company.

DMC has regular contact with the board and the company management and reviews its investments through monthly/quarterly reports and budgets.

Typically, DMC will invest DKK 10-30 mill. in any company, but together with other partners DMC is able to increase the direct equity investment.